MUSCAT: The Comprehensive Economic Partnership Agreement (CEPA) between the Sultanate of Oman and India officially enters into force today. The implementation follows the formal notification of the Rules of Origin framework by both nations, establishing the legal basis for preferential tariff treatment on bilateral trade flows.
Under the terms of the agreement, India has granted tariff concessions on 77.79% of its tariff lines, representing 94.8% of Oman’s current exports to the country by value. Omani industrial exports, including petroleum products, urea, and propylene, will see immediate duty reductions.
The pact also includes a specific Tariff-Rate Quota for Omani dates, allowing for 2,000 tonnes to enter India at zero duty annually. Other traditional exports such as Frankincense and Gum Arabica are also covered under the new preferential regime.
The agreement introduces a bilateral cumulation system within the Rules of Origin, allowing manufacturers in Oman to count Indian-sourced materials as local content for the purpose of meeting value-addition requirements. This mechanism is designed to facilitate the integration of supply chains between the two economies. For the services sector, the agreement raises the ceiling for intra-corporate transferees from 20% to 50%, easing the movement of managerial and technical personnel between the two jurisdictions.
Official data indicates that bilateral trade between Oman and India reached USD 11.18 billion in the 2025-26 fiscal year. Omani imports from India were valued at USD 4.02 billion, while exports to India stood at USD 7.16 billion. The CEPA is expected to support Oman’s ongoing economic diversification efforts under the Vision 2040 framework by providing Omani non-oil products with enhanced market access to India’s industrial and consumer segments.
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